China Adjusts Crude Oil Imports Amid Price Surge, Favors Discounted Russian and Saudi Grades

LAUNCESTON, Australia, Feb 26 (Reuters) - China, the world's largest crude oil importer, is adjusting its buying strategy in response to a sharp rise in global oil prices, Reuters reports. The country has begun favoring competitively priced crudes from Saudi Arabia and Russia while reducing imports from West Africa as Brent futures hit their highest level in nearly seven months at $72.50 a barrel on February 23.

China's shift aligns with its historical pattern of building inventories during price dips and reducing purchases when prices surge. Recent data from commodity analysts Kpler shows imports from Africa fell to 978,000 barrels per day (bpd) in February and 1.04 million bpd in March—down from 1.25 million bpd in Q4 2025. This decline reflects reduced demand for West African grades like Nigeria’s Bonny Light and Angola’s Cabinda, which saw discounts widening to $5 per barrel over Dated Brent, up from $3 earlier this month.

Geopolitical tensions, including U.S.-Iran conflicts and fears of Persian Gulf disruptions, have accelerated the price surge. Saudi Arabia’s official selling price for Arab Light crude dropped to parity with the Oman/Dubai average for March shipments—the lowest since December 2020. China has responded by increasing purchases of Saudi and Russian Urals crude, with Russian crude imports from Europe rising to 824,000 bpd in February from 444,000 bpd in December.

"China’s actions demonstrate its role as a price stabilizer in the crude market," noted industry analysts. The country’s strategic pivot highlights how major importers influence global oil dynamics through timely inventory management. As prices remain volatile, further adjustments in China’s import volumes could shape future market trends.

Source: Reuters